News Summary
The New York Office of Cannabis Management has admitted to an error in proximity guidelines for cannabis dispensaries, affecting 152 retailers statewide. A recent correction clarifies that the 500-foot distance must be measured from the dispensary’s entrance to the nearest school property line. Although concerns have arisen among business owners, the agency reassured that they are not compelled to relocate immediately. A relief program with a $15 million budget is being established to assist affected businesses, while legislative changes are being pursued to allow dispensaries to remain in their current locations.
New York City – The New York Office of Cannabis Management (OCM) has acknowledged a significant error regarding the proximity guidelines that affect licensed cannabis dispensaries and applicants across the state. A recent correction issued on July 28, 2022, outlines that 152 cannabis retailers, including 105 licensed dispensaries and 47 pending applicants, are impacted due to an incorrect measurement protocol that does not align with state law.
According to state regulations, cannabis dispensaries must maintain a minimum distance of 500 feet from school property lines. The OCM clarified that the distance should be properly measured from the dispensary’s main entrance to the nearest boundary of a school’s property line, rather than the previously established method of measuring from entrance to entrance. This misinterpretation has led to significant repercussions for cannabis businesses, with the majority of affected dispensaries located in New York City.
Out of the impacted dispensaries, 88 of the 105 licensed operators and 39 of the 47 pending applicants are situated in the New York City area. As of July 25, 2022, New York had a total of 436 licensed adult-use dispensaries, with 177 located in New York City alone.
The announcement of the correction has raised concerns among business owners and applicants. OCM Acting Executive Director Felicia Reid expressed understanding and sympathy for those affected by the situation, acknowledging the burden it imposes on their operations. However, the OCM has disputed claims suggesting that the affected retailers are being “forced” to relocate. Instead, the agency reassured stakeholders that they are not obligated to find new locations immediately.
To mitigate the impact on those affected, the OCM and the office of Governor Kathy Hochul are actively pursuing legislative changes that could potentially allow impacted dispensaries to remain in their current locations. Nonetheless, in the absence of new legislation, the OCM will not be able to renew permits for the 105 licensed dispensaries. Currently, dispensaries are permitted to continue operations until their licenses are set to be renewed. The agency is looking into grandfathering in those businesses that are already open.
For the 47 pending applicants, they are required to identify new locations before progressing with their applications. To support these businesses during this transition, the OCM plans to implement a relief program with a budget of $15 million, providing affected applicants with up to $250,000 in funding. This funding is aimed at aiding with the costs related to relocation or capital improvements necessary for their operations.
Despite these efforts, concerns have been raised regarding the relief program. Damian Fagon, OCM’s former chief equity officer, criticized the initiative, claiming it diverts valuable resources away from the communities that the cannabis legislation was intended to benefit. As the OCM continues its analysis, additional impacted retailers or applicants may be identified.
The agency’s failure to provide accurate guidance reflects the ongoing regulatory challenges faced within New York’s cannabis industry. This situation is further complicated by a broader context of operational difficulties, legal disputes, and a general slow-moving regulatory process. Governor Hochul has emphasized the urgency of finding corrective measures and the importance of legislative support for affected business owners.
As of now, OCM officials remain vigilant in their assessment and are committed to addressing the repercussions of this error in an effort to streamline the regulatory environment and sustain the growth of the cannabis sector in the state.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Cannabis Business Times
- Wikipedia: Cannabis in New York
- City and State NY
- Google Search: cannabis dispensaries New York
- The New York Times
- Google Scholar: cannabis regulations New York
- CBS News New York
- Encyclopedia Britannica: cannabis regulations
- New York State of Politics
- Google News: cannabis dispensaries New York
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
